New advertising spend forecasts for 100 markets worldwide show that the global ad market has largely weathered the impact of COVID-19, so far, and is on course to reach a value of $1 trillion in 2025.
Here’s the somber news for broadcasters: More than half of this money will be paid to just three companies: Alphabet, Meta and Amazon.
But, how are radio and TV poised to perform in the next five years? WARC, the international marketing intelligence service, has some new intelligence on the subject.
Totaling $771 billion this year — thanks to the strongest growth seen in four decades — global advertising investment is forecast to rise by 12.5% in 2022 and by 8.3% in 2023.
To little surprise, e-commerce platforms are set to lead this growth.
That’s not to say there’s bad news for broadcast media. Only, the increases are much smaller by comparison. Radio/audio global media investment is forecast to rise by 14% in 2022. For TV, it is anticipated to increase by 18%.
Podcasts are viewed separately, and it is a hot category, as seen below.
When looking specifically by “Legacy Media,” radio and TV each have positives. And, on a global level, Radio has a big plus to share.
Advertiser spend – inclusive of linear TV and broadcaster “catch up services” – is projected to grow by 3.3% to $184.7 billion in 2022, following a 5.5% rise this year. Importantly, Linear TV is set to remain larger than OTT – services such as YouTube and Amazon Prime Video – for the duration of the forecast period, though its share of global ad spend will dip below a fifth as broadcaster’s video-on-demand (BVOD) services attract incremental dollars.
Investment in broadcast radio ads rose by 8.4% – or $2.5 billion – this year and is set to grow by 3.5% in 2022 and a further 1.5% in 2023, by when the market will be worth $34.3 billion. Consequently, it is the only legacy medium set to record continuous growth over the forecast period.
Meanwhile, ad spend on online audio rose by a third to $5.4 billion in 2021, with podcast spend up 50.9% and streaming up 28.4%. Both formats are expected to see gains to 2023, by when the online audio sector as a whole is expected to be worth $8.3 billion.
Spotify is one of the main players, it is set to see ad income top $2 billion for the first time in 2023.
A sample of the full report is available to view here.
